The authorities of Kazakhstan and Kyrgyzstan introduce additional taxes for miners
The government of Kazakhstan has canceled the preferential taxation program for cryptocurrency miners, which was designed to bring the country to the third place in terms of bitcoin mining.
In order to fight COVID-19
As a result, miners will face higher electricity tariffs and a mandatory tax of 15% of the value of mined BTC. The government explains this decision by the coronavirus pandemic, which requires large expenses for the maintenance of hospitals and the purchase of medical equipment and ventilators.
The decision will negatively affect investors
Nevertheless, the decision looks at least strange, because it was tax-free mining that was the key reason for the infusion of new investments into the country. Now, with a high probability, the mining industry in Kazakhstan will become underground. According to the latest data, the country's mining farms can mine about 6% of all bitcoins, but only half of the devices are officially registered in the state.
In the neighboring republic the situation is the same.
A similar situation can be observed in Kyrgyzstan, where the Tax Code has already been changed, but has not yet come up with a rate for cryptocurrency miners. According to official information, enterprises in Kyrgyzstan account for only 0.15% of the world's bitcoin production, but the police regularly find illegal mining farms that are registered under a different type of activity